Energy shares are the stars of the day, as oil prices jumped by over $1 per barrel. Apparently, tensions in the Middle East are good for something. HSBC also joined the party, announcing a $3 billion share buyback and flaunting better-than-expected first-half profits, which sent its shares up by 2.3%.

On the flip side, GSK had a bit of a stumble, slipping by 1% despite raising its annual earnings and sales forecasts. The company is optimistic about 2024, expecting revenue growth between 7% and 9% and core operating profit growth of 11% to 13%. But apparently, investors were not impressed by the strong business momentum and new product launches in oncology and HIV medicines.

Rio Tinto kept things steady by maintaining its interim dividend and reporting a slight increase in sales revenue along with a 17% rise in pretax profit for the first half of the year. The company is feeling good about its future, especially in its aluminium portfolio and Pilbara iron ore operations.

Over in Japan, the Bank of Japan decided it was time for a change and raised its main interest rate to 0.25%, marking only its second hike in 17 years. They also announced plans to cut back on bond purchases, as economic activity and prices in Japan finally seem to be aligning with the central bank's outlook.

Microsoft shares took a hit, falling by 2.7% in after-hours trading despite reporting a 9.8% increase in net income and a 15% rise in revenue for the fourth quarter. It seems that slightly exceeding market expectations wasn't enough to offset disappointing cloud revenues.

In the UK, HSBC, not content with just one announcement, also reported a slight decrease in first-half pretax profit. Meanwhile, Rathbones reported a 3.4% increase in funds under management and administration.

In other news, UK Chancellor Rachel Reeves dropped a bombshell, announcing that taxes would likely be raised in the upcoming budget to address a £22 billion shortfall in public finances. On a brighter note, the government increased the budget for renewable energy schemes to a record £1.5 billion, aiming to make Britain a "clean energy superpower" by 2030.

Key economic events to watch include the eurozone CPI, German unemployment data, and the ADP U.S. employment report. But the main event is the U.S. Federal Reserve's interest rate decision, expected at 1900 BST. 

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